H.R. 4653

Accurate Accounting of Fannie Mae and Freddie Mac Act

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I

111th CONGRESS

2d Session

H. R. 4653

IN THE HOUSE OF REPRESENTATIVES

February 23, 2010

Mr. Garrett of New Jersey (for himself, Mr. Bachus, Mr. Quigley, Mr. Hensarling, Mr. Cole, Mrs. Capito, Mr. Gohmert, Mr. Neugebauer, Mr. Franks of Arizona, Mr. Price of Georgia, Mr. Luetkemeyer, Mr. Royce, Mr. Gingrey of Georgia, Mr. Rooney, Mr. Pitts, Mr. Marchant, Mr. Roe of Tennessee, Mr. McHenry, Mr. Bartlett, Mr. Posey, Mr. Fleming, Mr. Lee of New York, Mrs. Schmidt, Mr. Lamborn, Ms. Granger, Ms. Fallin, Mr. Lance, Mr. King of Iowa, Mr. Chaffetz, Mr. Bilbray, Mrs. Bachmann, Mr. Bishop of Utah, Mr. Herger, Mr. Fortenberry, Mrs. McMorris Rodgers, Mr. Alexander, and Mr. Jones) introduced the following bill; which was referred to the Committee on the Budget, and in addition to the Committees on Ways and Means and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To provide on-budget status to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.

1.

Short title

This Act may be cited as the Accurate Accounting of Fannie Mae and Freddie Mac Act.

2.

On-budget status of Fannie Mae and Freddie Mac

Notwithstanding any other provision of law, the receipts and disbursements, including the administrative expenses, of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall be counted as new budget authority, outlays, receipts, or deficit or surplus for purposes of—

(1)

the budget of the United States Government as submitted by the President;

(2)

the congressional budget; or

(3)

the Balanced Budget and Emergency Deficit Control Act of 1985 (or any successor statute).

3.

Treatment of mortgages and mortgage-backed securities

The costs of purchases of mortgages, and mortgage-backed securities issued, by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall be calculated by adjusting the discount rate in section 502(5)(E) of the Credit Reform Act of 1990 (2 U.S.C. 661a(5)(E)) for market risks.

4.

Fannie Mae and Freddie Mac debt subject to public debt limit

(a)

In general

For purposes of section 3101(b) of chapter 31 of title 31, United States Code, the face amount of obligations issued by the Federal National Mortgage Association and by the Federal Home Loan Mortgage Corporation and outstanding at one time shall be treated as issued by the United States Government under that chapter.

(b)

Effective date

Subsection (a) shall take effect on the ninetieth day beginning after the date of enactment of this Act.